All You Need to Know About Feed-In Tariff Charges

                                http://www.flickr.com/photos/st3f4n/4166307741/

National Renewable Energy Board (NREB) adjust upwards the proposed feed-in-tariff (FIT) charges for renewable energy (RE) technologies. 

Feed-in-tariff is an incentive program under the Renewable Energy Act of 2008 that aims to accelerate the establishment of renewable energy resources such as wind, solar, large hydro, biomass and ocean power in the country. 

FIT, as defined in the proposed rules, refers to a renewable energy policy that offers guaranteed payments per kilowatt-hour to renewable energy developers for the electricity they produce.

The tariff system will also require the National Grid Corporation of the Philippines (N.G.C.P.), who operates and maintains the Philippine transmission network via the National Transmission Corporation, and other distribution utilities to incorporate renewable energy into their power networks. 

The tariffs will be applicable for 20 years, which will start once the renewable energy projects start commercial operations.

Here's the changes.

Of all the RE technologies, it was biomass which gained the highest adjustment on its proposed FIT at P7.00 per kWh, higher by P0.45 per kWh from the previous estimate of P6.55 per kWh. Nevertheless, that is still lower than the P8.50 per kWh being batted for by the Biomass Alliance.

The FIT charge for run-of-river hydro has also been scaled up by P0.22 per kWh to P6.15 per kWh from P5.93 per kWh previously. Solar’s feed-in-tariff similarly went up by P0.39 per kWh to P17.95 from P17.56 per kWh; wind has also been higher by P0.32 per kWh to P10.37 from P10.05 per kWh; while ocean had gone up to P17.65 from P17.38 per kWh.